PUT BACKSPREAD	LONG STRANGLE
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

PUT BACKSPREAD Vs LONG STRANGLE - Details

	PUT BACKSPREAD	LONG STRANGLE
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile		Unlimited
Risk Profile		Limited
Breakeven Point		Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

PUT BACKSPREAD Vs LONG STRANGLE - When & How to use ?

	PUT BACKSPREAD	LONG STRANGLE
Market View	Bearish	Neutral
When to use?		This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action		Buy OTM Call Option, Buy OTM Put Option
Breakeven Point		Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

PUT BACKSPREAD Vs LONG STRANGLE - Risk & Reward

	PUT BACKSPREAD	LONG STRANGLE
Maximum Profit Scenario		Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid
Maximum Loss Scenario		Max Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PUT BACKSPREAD Vs LONG STRANGLE - Strategy Pros & Cons

	PUT BACKSPREAD	LONG STRANGLE
Similar Strategies		Long Straddle, Short Strangle
Disadvantage		• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
Advantages		• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .